GOOD AFTERNOON -- WELCOME AND THANK YOU FOR
ATTENDING THE CHAMBER’S ANNUAL BUSINESS MEETING TODAY, AND THANK YOU FOR
YOUR CONTINUED SUPPORT AND INTEREST IN THE CITY OF GLENDALE.
I ALSO WANT TO THANK THE CHAMBER’S BOARD OF
DIRECTORS WHO PROVIDE THIS OPPORTUNITY FOR ME TO PRESENT MY ANNUAL “STATE
OF THE BUSINESS COMMUNITY ADDRESS” AT THIS LUNCHEON.
I HOPE YOU ENJOYED THE VIDEO TODAY. IT
INCLUDES EXCERPTS FROM OUR NEW “THIS IS GLENDALE” DVD. EVERY TIME I
SEE THE VIDEO, I AM INSPIRED AND VERY PROUD OF ALL THE WAYS GLENDALE HAS
EMERGED AS A MAJOR SOCIO-ECONOMIC CONTRIBUTOR AND INFLUENCER IN THE STATE
OF ARIZONA.
AS GLENDALE’S SUPPORTERS, YOU KNOW THAT OVER
THE PAST SEVERAL YEARS WE HAVE MADE THOUGHTFUL, BUT BOLD DECISIONS ABOUT
THE DEVELOPMENT OF OUR CITY’S WESTERN AREA. THOSE DECISIONS ELICITED
INTERESTING RESPONSES FROM THE REGIONAL COMMUNITY AND BEYOND.
THERE WERE MANY SKEPTICS -- SOME CONSIDERED
THE GLENDALE CITY COUNCIL TO BE NAÏVE AND OVERMATCHED BY OUR DEVELOPMENT
PARTNERS. CRITICS SAID THAT THE PUBLIC WOULD NOT WANT TO DRIVE “WAY OFF
THE BEATEN PATH TO 91ST AVENUE,” WHICH IS A QUOTE FROM A FORMER VALLEY
MAYOR. BUT, WE DID HAVE SUPPORT FROM OUR RESIDENTS AND LOCAL BUSINESS
COMMUNITY, AND WE ARE GRATEFUL EVERYDAY FOR THAT CONFIDENCE AND
ENTHUSIASM.
TODAY, WITH OUR NATIONAL, STATE, AND LOCAL
ECONOMY SPIRALING OUT OF CONTROL, WE CAN REFLECT ON WHAT WERE CONSIDERED
DARING MOVES AND BE THANKFUL THAT WE DID APPROVE DEVELOPMENT PROJECTS THAT
HAVE ADDED TO THE WEALTH OF OUR COMMUNITY.
HERE ARE A FEW QUICK UPDATES ON RECENT
ECONOMIC ACTIVITY IN GLENDALE.
IN NOVEMBER, THE RENAISSANCE GLENDALE HOTEL
AND SPA MARKED ITS ONE-YEAR ANNIVERSARY WITH REPORTS OF $20 MILLION IN
REVENUE; 100 SOLD OUT NIGHTS; AND 600 PROFESIONAL CONFERENCES AND
CONVENTIONS IN THEIR VERY FIRST YEAR -- ALL EXCEEDING INITIAL PROJECTIONS.
WESTGATE CITY CENTER NOW HAS MORE THAN 2.5
MILLION SQUARE FEET OF CONSTRUCTION COMPLETED AND OCCUPIED. GETTING IN TO
ANY OF WESTGATE’S 21 RESTAURANTS ON A WEEKEND NIGHT REQUIRES INCREDIBLE
PATIENCE.
ON SATURDAY, DECEMBER 27TH, OUR CITY-OWNED
ARENA CELEBRATED ITS FIVE-YEAR ANNIVERSARY, AND MEMORIES OF WHAT SEEMED TO
BE A HUGE BUILDING STANDING ALONE IN THE MIDDLE OF A FARM FIELD ARE NOW
VERY HARD TO VISUALIZE.
ON SUNDAY, DECEMBER 28TH, THE ARIZONA
CARDINALS COMPLETED THEIR THIRD REGULAR SEASON OF SOLD-OUT GAMES IN
GLENDALE, AND ALL OF ARIZONA IS THRILLED TO HONOR THEM AS THE NFC WEST
DIVISION CHAMPIONS.
ON SATURDAY, JANUARY 3RD, THE CARDINALS PLAYED
TO A STADIUM FULL OF LOUD, HAPPY FANS AND BEAT THE ATLANTA FALCONS TO WIN
A SPOT IN THE DIVISIONAL PLAYOFFS.
AND, AFTER THOSE SPECTACULAR GAMES CAME THE
THIRD FIESTA BOWL GAME HELD IN GLENDALE -- AND WHAT AN EXCITING GAME IT
WAS.
THE ECONOMIC ENGINE THAT IS GLENDALE’S
SPORTS AND ENTERTAINMENT DISTRICT PRODUCED $10.1 MILLION IN REVENUE FOR
OUR CITY DURING THE PAST FISCAL YEAR -- A GOOD BEGINNING FOR THE AREA’S
NEWEST AND BEST VENUES.
AND THE REVENUE WILL CONTINUE TO GROW AS
GLENDALE’S VENUES CONTINUE TO GROW.
TWENTY-THREE MONTHS AGO, I STOOD ON THIS STAGE
AT THE GLENDALE CHAMBER’S 2007 ANNUAL BUSINESS MEETING AND INTRODUCED
JERRY REINSDORF, OWNER OF THE CHICAGO WHITE SOX BASEBALL TEAM. TOGETHER,
WE ANNOUNCED THAT GLENDALE WOULD BE THE SPRING TRAINING HOME OF THE WHITE
SOX AND THE LOS ANGELES DODGERS.
IN LESS THAN TWO MONTHS FROM TODAY --- ON
SUNDAY, MARCH 1 --- THE DODGERS AND WHITE SOX WILL PLAY EACH OTHER IN THE
VERY FIRST GAME IN GLENDALE’S NEW SPRING TRAINING COMPLEX BUILT
SPECIFICALLY FOR THEM.
AND, THE MOST RECENT SPORTS ORGANIZATION TO
GET ON “THE ROAD TO GLENDALE” IS USA BASKETBALL, WHICH ANNOUNCED IN
NOVEMBER THAT IT WILL MOVE ITS HEADQUARTERS FROM COLORADO TO GLENDALE BY
THE YEAR 2010.
FOUR PROFESSIONAL SPORTS TEAMS, THREE
STATE-OF-THE-ART FACILITIES, AND MULTIPLE MIXED-USE DEVELOPMENTS ALL
OPENED IN A FIVE-YEAR TIME SPAN IS PRETTY REMARKABLE.
AS THOMAS JEFFERSON, OUR COUNTRY’S THIRD
PRESIDENT, ONCE SAID, “DETERMINE NEVER TO BE IDLE…. IT IS WONDERFUL
HOW MUCH MAY BE DONE IF WE ARE ALWAYS DOING.” I THINK PRESIDENT
JEFFERSON’S QUOTE REALLY DEFINES GLENDALE.
WHILE I HAVE CONCENTRATED TODAY ON
DEVELOPMENTS IN OUR WESTERN AREA, I WANT TO RESTATE OUR COUNCIL’S FOCUS
AND EMPHASIS ON QUALITY DEVELOPMENT AND REDEVELOPMENT IN ALL PARTS OF OUR
CITY.
WE ARE EXTREMELY FORTUNATE TO HAVE VITAL
MASTER-PLANNED COMMUNITIES LIKE ARROWHEAD RANCH, AND THE POPULAR AND
SUCCESSFUL ARROWHEAD TOWNE CENTER REGIONAL MALL IN NORTH GLENDALE.
AND, WE ARE EQUALLY FORTUNATE TO HAVE A REAL
DOWNTOWN CORE THAT PEOPLE ENJOY VISITING. WE LAUNCHED OUR CENTERLINE
PROJECT IN 2008 TO DEVELOP PLANS, IN CONCERT WITH OUR RESIDENTS AND
BUSINESSES, TO INCREASE THE PRODUCTIVITY OF OUR DOWNTOWN AND THE GLENDALE
AVENUE CORRIDOR TO THE EAST AND WEST OF DOWNTOWN.
GRADY GAMMAGE, JR. A RESPECTED AUTHORITY ON
LAND-USE TRENDS IN THE STATE, SPOKE AT A RECENT CENTERLINE MEETING FOR
GLENDALE BUSINESS AND PROPERTY OWNERS.
IN HIS REMARKS, HE COMMENTED THAT CITIES
USUALLY HAVE ONLY ONE OR MAYBE TWO AREAS OF DEVELOPMENT. HE WENT ON TO SAY
THAT GLENDALE’S THREE DISTINCT AREAS MAKE OUR CITY UNIQUE AND SOMETHING
WE SHOULD BE VERY PROUD OF.
AND WE ARE VERY PROUD OF ALL THAT EVERY PART
OF GLENDALE OFFERS AND CONTRIBUTES TO THE GROWTH AND PROSPERITY OF NOT
ONLY OUR OWN CITY, BUT TO THE STATE OF ARIZONA.
THE COUNCILMEMBERS AND I HAVE RE-AFFIRMED OUR
COMMITMENT TO OUR STRATEGIC GOALS OF MAINTAINING ONE COMMUNITY WITH STRONG
NEIGHBORHOODS, QUALITY ECONOMIC DEVELOPMENT, AND A VIBRANT CITY
CENTER.
GLENDALE HAS CREATED AN UNPARALLELED ECONOMIC
VIBRANCY BY ENTERING INTO PARTNERSHIPS. WITH THE HELP OF OUR PUBLIC- AND
PRIVATE-SECTOR PARTNERS, WE HAVE GENERATED APPROXIMATELY $1 BILLION
DOLLARS OF ECONOMIC ACTIVITY FOR THE STATE IN JUST A LITTLE OVER TWO
YEARS.
BY SOME ESTIMATES, SUPER BOWL 42 ALONE
GENERATED $500 MILLION DOLLARS IN TOTAL ECONOMIC OUTPUT. ACCORDING TO A
FISCAL IMPACT STUDY OF THE SUPER BOWL BY ELLIOT POLLACK, VISITORS SPENT
$213 MILLION DOLLARS ON TAXABLE PURCHASES IN MARICOPA COUNTY. THIS
SPENDING TRANSLATED INTO $9 MILLION DOLLARS IN NEW TAX REVENUE FOR THE
STATE OF ARIZONA.
AND, OF COURSE, THE ARIZONA CARDINALS, PHOENIX
COYOTES, AND THE EVENTS AND CONCERTS AT BOTH OUR ARENA AND THE FOOTBALL
STADIUM HAVE ALSO ADDED GREATLY TO OUR STATE’S ECONOMY DURING THIS TIME.
OUR STATE’S ECONOMY NEEDS ALL THE NEW
REVENUE GENERATION HELP IT CAN GET.
THE DEFICIT IN THE STATE BUDGET IS $1.5
BILLION DOLLARS FOR THE CURRENT FISCAL YEAR AND A POTENTIAL OF MORE THAN
$2 BILLION DOLLARS DEFICIT FOR THE FISCAL YEAR BEGINNING JULY 1.
THE SITUATION IS EXTREMELY SERIOUS. AND THIS
BRINGS ME TO THE QUESTION THAT IS PROBABLY ON YOUR MINDS -- HOW IS THE
CITY OF GLENDALE FARING IN THE MIDST OF THE WORST FINANCIAL CONDITIONS TO
EVER FACE OUR STATE.
ALMOST DAILY YOU ARE READING AND HEARING ABOUT
HOW MUNICIPAL GOVERNMENTS IN THE VALLEY ARE DEALING WITH DECLINING
REVENUES AND BUDGET SHORTFALLS. SOME CITIES ARE LAYING OFF EMPLOYEES AND
ELIMINATING PROGRAMS. ALL OF US ARE IMPLEMENTING COST-CUTTING MEASURES.
THE COST-CUTTING MEASURES DIRECTED BY OUR CITY
MANAGER ARE DESIGNED TO HAVE AS LITTLE IMPACT AS POSSIBLE ON SERVICES TO
OUR RESIDENTS AND BUSINESSES.
BUT THAT MAY NOT BE POSSIBLE FOR VERY LONG.
THE BAD NEWS JUST KEEPS COMING. IN EARLY DECEMBER, WE LEARNED THE STATE’S
URBAN REVENUE SHARING FUND WILL DROP BY 13.5 PERCENT THIS YEAR.
THE URBAN REVENUE SHARING FUND WAS CREATED TO
PREVENT CITIES AND TOWNS FROM IMPOSING LOCAL INCOME TAXES, AS IS DONE IN
OTHER STATES. INSTEAD, ARIZONA SHARES 15 PERCENT OF STATE INCOME TAX
COLLECTIONS WITH ALL CITIES AND TOWNS USING A POPULATION-BASED FORMULA.
THE 13.5 PERCENT DROP IN COLLECTIONS MEANS
THERE WILL BE $100 MILLION LESS COMING TO THE CITIES AND TOWNS.
THIS ONE ECONOMIC EXAMPLE DEMONSTRATES HOW
DEPENDENT ALL CITIES AND TOWNS ARE ON THE ARIZONA STATE BUDGET.
BUT ON THE FLIP SIDE, THE STATE RELIES ON THE
ECONOMIC VITALITY OF ARIZONA’S 90 CITIES AND TOWNS TO GENERATE HUNDREDS
OF MILLIONS OF DOLLARS IN TAX REVENUE ANNUALLY FOR THE STATE.
NEARLY 90 PERCENT OF ALL NON-FARMING JOBS IN
ARIZONA ARE LOCATED IN OUR CITIES AND TOWNS. MORE THAN 90 PERCENT OF THE
INCOME TAX THE STATE COLLECTS EACH YEAR IS PAID BY RESIDENTS AND BUSINESS
LOCATED IN CITIES AND TOWNS. AND NEARLY 95 PERCENT OF THE STATE’S SALES
TAX REVENUE IS GENERATED IN CITIES AND TOWNS.
REALIZING THAT CITIES AND TOWNS ARE BOTH THE
CATALYSTS FOR FINANCIAL STABILITY AND ALSO THE PROVIDERS OF THE MOST
ESSENTIAL BASIC SERVICES FOR
THE STATE -- ITS RESIDENTS, ITS BUSINESSES,
AND ITS VISITORS -- ARIZONA VOTERS HAVE PASSED A SERIES OF PROPOSITIONS
OVER THE LAST 50 YEARS REQUIRING THE STATE TO RETURN A PORTION OF YOUR TAX
DOLLARS BACK TO THE CITIES YOU LIVE IN. WE REFER TO THESE DISTRIBUTIONS OF
STATE SALES, INCOME, AND VEHICLE REGISTRATION TAXES AS “SHARED REVENUES”
OR “STATE-SHARED REVENUES.”
IN GLENDALE, SHARED REVENUES CURRENTLY TOTAL
$68 MILLION DOLLARS ANNUALLY AND MAKE UP 37 PERCENT OF OUR CITY’S
GENERAL FUND BUDGET. THAT 37 PERCENT IS AN AVERAGE PROPORTION FOR CITIES
THE SIZE OF GLENDALE.
UNDERSTANDING HOW INTERWOVEN THE STATE’S
FINANCES ARE WITH MUNICIPAL BUDGETS MAKES IT EASY TO UNDERSTAND HOW
UNNERVING IT IS TO HEAR OUR STATE TREASURER SAY ARIZONA COULD RUN OUT OF
MONEY AS EARLY AS NEXT MONTH AND THAT THERE WON’T BE ANY CASH RESERVES
TO COVER THE BILLS.
HOUSE SPEAKER-ELECT KIRK ADAMS PUT IT
SUCCINTLY BY SAYING, “ESSENTIALLY, THE STATE IS BROKE.”
RECENTLY STATE REPRESENTATIVE ADAMS AND SENATE
PRESIDENT-ELECT BOB BURNS HAVE BOTH COMMENDED ARIZONA CITIES AND TOWNS FOR
THE WAY WE HAVE BEEN FACING UP TO THE ECONOMIC CRISIS AND IMPLEMENTING
MEASURES TO BALANCE OUR BUDGETS. THEY HAVE RECOGNIZED US FOR STEPPING UP
AND MAKING THE TOUGH DECISIONS EARLY ON -- SAYING THE STATE SHOULD FOLLOW
OUR EXAMPLE.
WE SINCERELY APPRECIATE KNOWING THAT THE
LEADERS OF THE STATE HOUSE AND THE STATE SENATE -- AND MANY MORE MEMBERS
OF THE ARIZONA LEGISLATURE -- UNDERSTAND THAT WE ARE BEING HIT ON MULTIPLE
FRONTS . . . DECREASED SALES TAX REVENUES FROM DECREASED CONSUMER
SPENDING; DECREASED REVENUES FROM LODGING DUE TO DECREASED BUSINESS AND
LEISURE TRAVELING; AND DECREASED REVENUES FROM PERMITS AND CONSTRUCTION
SALES TAX DUE TO DECREASED HOMEBUILDING.
WE WILL ALSO EXPERIENCE DECREASED REVENUE FROM
STATE SALES TAX COLLECTIONS. AND, A LARGE PORTION OF OUR SHARE OF GAS
TAXES HAS BEEN DIVERTED TO PAY SALARIES FOR DEPARTMENT OF PUBLIC SAFETY
OFFICERS.
WHILE SOME LEGISLATORS MAY BE TEMPTED TO TRY
TO FURTHER REDUCE REVENUES EARMARKED TO CITIES AND TOWNS, WE TRUST
LEGISLATIVE LEADERSHIP TO RECOGNIZE THAT WE HAVE MORE THAN OUR SHARE OF
FINANCIAL PROBLEMS TO DEAL WITH.
I REALIZE THAT EXPLAINING HOW MUNICIPAL AND
STATE BUDGETS WORK IS NOT SOMETHING YOU WOULD EXPECT ME TO BE TALKING
ABOUT DURING MY ANNUAL STATE OF THE BUSINESS COMMUNITY ADDRESS. BUT, THIS
YEAR, THERE IS NO SUBJECT MORE IMPORTANT AND TIMELY
TO ALL OF US ATTENDING
THIS LUNCHEON TODAY. THE HEALTH AND WELL-BEING OF OUR LOCAL AND STATE
ECONOMY WILL HAVE A RIPPLE EFFECT ON EVERY SECTOR OF BUSINESS – WHETHER
YOU ARE A SOLE PROPRIETER, SMALL BUSINESS, NON-PROFIT ORGANIZATION OR
FOR-PROFIT COMPANY.
WE IN GLENDALE AND THOSE IN THE OTHER 89
ARIZONA CITIES AND TOWNS WILL CONTINUE TO KEEP A CLOSE EYE ON REVENUES AND
EXPENSES AND MAKE EXTREMELY CAUTIOUS DECISIONS AS WE GO THROUGH THE
PROCESS OF MAINTAINING BALANCED BUDGETS.
BUT, WE WANT YOU TO KNOW THAT ALL OF OUR
PLANNING CAN BE FOR NAUGHT IF STATE ACTIONS SHIFT THEIR TAX BURDEN AND
FINANCIAL WOES TO US.
NOW, MORE THAN EVER, WE MUST WORK CLOSELY WITH
OUR LEGISLATORS TO KEEP CITIES AND TOWNS STRONG. WE WILL APPRECIATE ALL
THE SUPPORT YOU CAN GIVE US BY CONVEYING TO YOUR STATE LEGISLATORS HOW
MUCH YOU RELY ON THE SERVICES AND PROGRAMS YOUR CITIES PROVIDE TO YOU.
WE MUST ALSO WORK CLOSELY WITH OUR
REPRESENTATIVES AT THE STATE CAPITOL TO STRENGTHEN ECONOMIC DEVELOPMENT
POLICIES AND PROGRAMS THAT WILL RESULT IN SUSTAINED GROWTH.
AS SPEAKER-ELECT ADAMS STATED IN A RECENT
MEETING WITH A SMALL GROUP OF MAYORS, THE STATE MUST DIVERSIFY ITS ECONOMY
AND INITIATE MEANINGFUL TAX REFORM MEASURES AT THE SAME TIME THAT THE
CURRENT BUDGET PROBLEMS ARE BEING WORKED OUT.
MEASURES MUST BE TAKEN AND CHANGES MUST BE
INSTITUTED TO PREVENT FUTURE LOCAL ECONOMIC DIFFICULTIES AND ALSO PREPARE
US TO BETTER WITHSTAND NATIONAL MELTDOWNS SUCH AS WE ARE EXPERIENCING NOW.
WE HAVE AN OPPORTUNITY NOW TO MAKE SOMETHING
GOOD OUT OF THIS CRITICAL SITUATION. AND WE MUST NOT WAIT.
WE NEED OUR STATE GOVERNMENT LEADERS TO
APPROVE USEFUL AND ATTRACTIVE STRATEGIES THAT WILL PUT ARIZONA ON PAR WITH
OTHER STATES, ESPECIALLY THOSE IN THE SOUTHWEST AND NORTHWEST. CREATING AN
INNOVATION-DRIVEN ECONOMY AT THE STATE LEVEL WILL HELP CITIES ATTRACT
HIGH-WAGE JOBS AT THE LOCAL LEVEL. THIS IS WHAT MUST BE DONE FOR ARIZONA
TO BECOME MORE COMPETITIVE WITH OTHER REGIONS IN THE COUNTRY.
AT THE FOREFRONT OF DEVELOPING NEEDED
STRATEGIES IS THE GREATER PHOENIX ECONOMIC COUNCIL, REFERRED TO AS GPEC.
GPEC IS COMPRISED OF 18 CITIES, MARICOPA COUNTY GOVERNMENT, AND MORE THAN
140 PRIVATE-SECTOR COMPANIES. GPEC SERVES AS THE CATALYST THAT STRENGTHENS
THE REGION’S ECONOMIC BASE.
TODAY, WE WILL LEARN ABOUT GPEC’S EFFORTS
FROM THE CHAIRMAN OF ITS BOARD OF DIRECTORS, MICHAEL BIDWILL.
YOU ARE USED TO HEARING HIM TALK ABOUT
BUILDING A WINNING FOOTBALL TEAM. TODAY, HE WILL BE TALKING ABOUT BUILDING
A WINNING ECONOMIC DEVELOPMENT PROGRAM.
LADIES AND GENTLEMEN, IT IS MY PLEASURE TO
INTRODUCE A MAN FOR WHOM WINNING IS THE ONLY OPTION -- MICHAEL BIDWILL.